PRESENTATION JANUARY 2020 OUR MILESTONES 1989 2000 2007 2012 2013 2015 2017 2020 FOUNDATION LISTING RETAIL DIGITAL MOBILE MOBILE AND CONSOLE SHAREHOLDING PUBLISHING PUBLISHING PUBLISHING DEVELOPERS ACQUISITION ACQUISITION IN VIDEOGAME COMPANY M O B I L E JANUARY 2020 2 2 MARKET VALUE CHAIN RETAIL CONSOLE DEVELOPERS PUBLISHERS DISTRIBUTORS RETAILERS END CONSUMERS MANUFACTURERS DIGITAL DEVELOPERS PUBLISHERS MARKETPLACES END CONSUMERS DIGITAL BROS GROUP JANUARY 2020 3 WE DEVELOP, PUBLISH AND MARKET MULTICHANNEL VIDEOGAMES DISTRIBUTION Retail distRibution (chains PUBLISHING and stoRes – global distRibution netwoRk) ip scouting and selection digital download (digital STUDIOS pRoduction suRvey maRketplaces, mobile and tablet stoRe, social dR studios maRketing & pR platfoRms) kunos simulazioni sales and pRomotions ovosonico custumeRs suppoRt 4 PRODUCTS PREMIUM AND FREE TO PLAY THE GROUP OPERATES GLOBALLY IN THE PREMIUM AND FREE TO PLAY GAMES WITH THE 505 GAMES BRAND PREMIUM GAMES FREE TO PLAY acQuisition of contents Rights fRom development and publishing of developeRs (ip owneRship, long teRms videogames available foR fRee on agReement, thiRd paRty) the main digital channels (console maRketplaces, mobile and social distRibution of the videogames thRough platfoRms) tRaditional inteRnational sales netwoRk and digital maRketplaces in app puRchases aRe the main Revenue (steam, sony playstation netwoRk, stReam micRosoft XboX live and epic games stoRe) continuous development and impRovements afteR the launch to maintain games always fun JANUARY 2020 5 CHANNELS DIGITAL AND RETAIL DIGITAL RETAIL DISTRIBUTION DISTRIBUTION retail digital online maRketplaces : main chains & stoRes Steam 100% PlayStation network e-commeRce 2% 90% 14% XboX live 80% 40% Epic GameS Store 42% 47% 70% 49% 60% 63% game app download : 60% 72% mobile and tablet StoreS 50% 60% online social platfoRms: 40% 98% 86% 58% 51% main Social networkS 30% 53% 20% 40% 37% 28% 10% REVENUES TREND RETAIL VS DIGITAL 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 ACT ACT ACT ACT ACT ACT ACT ACT ACT + FORE JANUARY 2020 6 WORLDWIDE PRESENCE HEADQUARTERS: MILAN 200* PEOPLE WORLDWIDE JANUARY 2020 7 NEW RELEASES 1 & INVESTMENTS 8 PLANNED INVESTMENTS ouR successful pRoducts geneRated cash we enteRed into the laRgest investment plan thRough to invest foR gRowth stRategic acQuisitions and bRand new publishing deals JANUARY 2020 - NEW RELEASES & INVESTMENTS 9 IP PORTFOLIO JANUARY 2020 LONG TERM THIRD OWNED IP AGREEMENTS PARTY PARTNERSHIPS JANUARY 2020 - NEW RELEASES & INVESTMENTS 10 SIGNIFICANT RELEASES FOR PREMIUM AND FREE TO PLAY PREMIUM DIGITAL & RETAIL 2019 2020 2021 FREE TO PLAY CONSOLE AND MOBILE JANUARY 2020 - NEW RELEASES & INVESTMENTS 11 ASSETTO CORSA assetto coRsa is the #1 Racing simulatoR – 5.2 million copies sold and moRe than euRo 37 million Revenues new episode assetto coRsa competizione: official game of the blancpain gt seRies (3 yeaRs paRtneRship) Released on may 29th 2019 fully licensed gt caRs fRom top manufactuReR: feRRaRi, lamboRghini, mclaRen uniQue selling points of the game: extraordinary level of simulation quality outstanding level of details with circuit laser scan technology new unreal engine 4 MOBILE VERSION UNDER DEVELOPMENT JANUARY 2020 - NEW RELEASES & INVESTMENTS 12 BLOODSTAINED latest cReation of koji igaRashi, the foRmeR seRies pRoduceR of castelvania fRanchise spiRitual successoR of the castlevania seRies which has been a top selleR game in the pRevious decade second laRgest videogame cRowdfunding kickstaRteR campaign in 2015 ($5.5 million fRom 65k backeRs) the game is available foR ps4, XboX one, pc windows, linuX and osX high metacRit scoRe (avg. above 83) and useR scoRe (avg. above 8.3) on playstation 4, XboX one and pc eXpected lifetime Revenues of at least euRo 30 million fRom the videogame PS4/XBOX ONE RELEASED ON JUNE 18TH 2019 SWITCH RELEASED ON JUNE 25TH 2019 JANUARY 2020 - NEW RELEASES & INVESTMENTS 13 CONTROL cinematic thiRd peRson action game built on Remedy’s pRopRietaRy noRthlight® technology developed by Remedy enteRtainment, developeR of aaa video games (maX payne, alan wake and Quantum bReak) woRldwide publishing Rights on pc, playstation 4 and XboX one publishing paRtneRship with epic games the total investment in the game is euRo 12.25 million high metacRit scoRe (avg. 83) RELEASED ON AUGUST 27TH, 2019 JANUARY 2020 - NEW RELEASES & INVESTMENTS 14 INDIVISIBLE classically-influenced Rpg and platfoRmeR hybRid cReated by lab zeRo games (developeR of skullgiRls) cRowdfunded on indigogo in 2015 (moRe than us $2 million Raised) uniQue selling points of the game: mix of RPG action and platform huge character roster woRldwide publishing Rights on pc, playstation 4, XboX one and nintendo switch high metacRit scoRe (avg. above 80) RELEASED ON OCTOBER 8TH, 2019 JANUARY 2020 - NEW RELEASES & INVESTMENTS 15 JOURNEY TO THE SAVAGE PLANET fiRst-peRson adventuRe game set in a bRight and coloRful alien woRld debut title fRom industRy veteRans aleX hutchinson, yassine Riahi and Reid schneideR’s new montReal-based development studio, typhoon studios woRldwide publishing Rights on pc, playstation 4 and XboX one publishing paRtneRship with epic games RELEASE ON JANUARY 28TH, 2020 JANUARY 2020 - NEW RELEASES & INVESTMENTS 16 HAWKEN mech genRe: collect, build and customize youR mech stRong f2p system with immeRsive pve elements laRge population of gameRs the actual pRoduction is not just a seQuel: new game design objective-based pve to maximize revenues without being ‘pay-to-win’ & to create sustainable longterm product growth enhanced mech customization system for deeper monetization streams mech differentiation to enhance KPIs RELEASE IN SPRING 2020 JANUARY 2020 - NEW RELEASES & INVESTMENTS 17 DEATH STRANDING gRoundbReaking eXpeRience fRom legendaRy game cReatoR hideo kojima console veRsion published by sony inteRactive enteRtainment Released on November 8th, 2019 High Metacritic Score: avg. 83 woRldwide publishing Rights on pc foR digital bRos eXpected lifetime Revenue in eXcess of euRo 50 million fRom the pc veRsion of the videogame RELEASE IN SUMMER 2020 JANUARY 2020 - NEW RELEASES & INVESTMENTS 18 2 FINANCIALS 19 MARKET SIZE THE WORLDWIDE GAMES MARKET WILL REACH $196 BILLION BY 2022 +9% $196.0 Bn TOTAL MARKET CAGR $178.2 Bn 2018-2022 $164.6 Bn 19% $148.8 Bn 20% $138.7 Bn 1% 21% 21% 1% 22% 2% 31% 2% 31% Boxed/Dowloaded PC 3% 31% 30% Browser PC 31% 8% 8% 8% 9% Console 9% 40% 41% Tablet 35% 37% 38% Smartphone 2018 2019 2020 2021 2022 SOURCE NEWZOO GLOBAL MARKET REPORT, OCTOBER 2019 UPDATE JANUARY 2020 - FINANCIALS 20 CONSOLIDATED P&L - Q1 2020 ACTUAL €/1000 FY 2020 YTD FY 2019 YTD CHANGE CHANGE % GROSS REVENUES 38529 17,427 21102 121% NET REVENUES 36,419 16,424 19995 122% EBITDA 5337 1236 4101 n.m. EBIT 3192 (16) 3808 n.m. EBT 3899 (63) 4562 n.m. NET PROFIT 2876 (06) 3,482 n.m. FISICAL YEAR ENDING 30TH JUNE SOURCE: DIGITAL BROS SIGNIFICANT REVENUE GROWTH IN THE FIRST QUARTER AND IMPROVEMENT OF ALL FINANCIAL MARGINS FUELED BY THE GROUP’S STRATEGIC PLAN OF VIDEOGAME RELEASES. VIDEO GAMES RELEASE PLAN: BLOODSTAINED (LAST QUARTER FY2019), CONTROL (Q1 FY2020), INDIVISIBLE (Q2 FY2020), JOURNEY TO SAVAGE PLANET (Q3 2020). JANUARY 2020 - FINANCIALS 21 PREMIUM GAMES - Q1 2020 ACTUAL €/1000 FY 2020 YTD FY 2019 YTD CHANGE CHANGE % GROSS REVENUES 32,613 11343 21270 188% NET REVENUES 30926 10844 20082 185% EBITDA 6295 2086 4209 n.m. EBIT 5063 866 4197 n.m. FISICAL YEAR ENDING 30TH JUNE SOURCE: DIGITAL BROS GROSS REVENUE SIGNIFICANT INCREASE (+188%) RESULTING FROM THE SALES OF CONTROL, LAUNCHED ON AUGUST 27TH, 2019 (€17.7 MILLION) AND BLOODSTAINED, LAUNCHED IN Q4 LAST FY (€5.5 MILLION) JANUARY 2020 - FINANCIALS 22 FREE TO PLAY - Q1 2020 ACTUAL €/1000 FY 2020 YTD FY 2019 YTD CHANGE CHANGE % GROSS REVENUES 1,673 1,638 35 21% NET REVENUES 1,673 1,638 35 21% EBITDA 428 538 (110) 205% EBIT (230) 48 (278) n.m. FISICAL YEAR ENDING 30TH JUNE SOURCE: DIGITAL BROS REVENUES INCREASED BY 2.1% DUE TO THE POSITIVE PERFORMANCE OF GEMS OF WAR JANUARY 2020 - FINANCIALS 23 REVENUE BREAKDOWN BY SEGMENT CONSOLIDATED FY 2018 CONSOLIDATED Q1 ACTUAL + FY2020 FORECAST Premium Games Premium Games 71.2% 84,2% Italian Distribution Italian Distribution 20.3% 8,4% Free to Play Free to Play 7.6% 6,9% Other Projects Other Projects 0.9% 0,6% JANUARY 2020 - FINANCIALS 24 GLOBALIZATION 100% 90 16% REVENUES TREND 33% ITALY VS INTERNATIONAL 80 70 62% 60 79% Italy 80% 50 international 82% 82% 91% 40 84% 86% 30 67% 20 38% 10 21% 20% 18% 14% 18% 9% 0% 2007 2010 2014 2015 2016 2017 2018 2019 2020 ACT ACT ACT ACT ACT ACT ACT ACT ACT JANUARY 2020 - FINANCIALS 25 NET FINANCIAL POSITION OVER THE LAST YEARS 20,00 45,00 10,00 40,00 0 35,00 (10,00) 30,00 (20,00) 25,00 (30,00) 20,00 (40,00) 15,00 NET FINANCIAL POSITION INVESTMENTS * (50,00) 10,00 (60,00) 5,00 (70,00) - Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 *ADVANCES PAID FOR IPs AND LICENSES + TANGIBLE AND INTAGIBLE ASSETS JANUARY 2020 - FINANCIALS 26 OUTLOOK significant Revenue gRowth eXpected in the cuRRent fiscal yeaR and impRovement of all financial maRgins video games Release plan fy2020: contRol Released in Q1, indivisible Released in Q2, jouRney to the savage planet will be launched in Q3 and the fRee to play videogame hawken will be Released in Q4 significant Revenue stReam fRom dlcs digital distRibution following new videogame launches betteR pRedictability of Revenue fRom contRactual agReements (e.g. eXclusivity deals with digital maRketplaces, sublicensing contRacts with the faR east) and easieR statistical estimations (dlcs) eXpected Reduction of net financial debt duRing the fiscal yeaR JANUARY 2020 - FINANCIALS 27 DIGITAL BROS - A SNAPSHOT GLOBAL COMPANY, OPERATING ACROSS the VIDEOGAME enteRTAINMENT maRket DEVEOLPMENT, publishing AND maRketing MULTICHANNEL VIDEOGAMES COMBINING pRemium games AND fRee to PLAY to maXimize the bRand pROFITABILITY ACQuisition OF UNDERpeRfoRming INTELLECTUAL pROPERties (i.e.